Nordic Paper Holding AB (NPAPER) AI Stock Analysis

• Market Cap: €3.19B
• Dividend Yield: 8.41%
• Average Volume (3M): 59.99K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.51
• Revenue Growth: 3.95%
• EPS Growth: -10.26%
• Country: SE
• Employees: 693
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.94
• Shares Outstanding: 66,908,800
• 10 Day Avg. Volume: 79,670
• 30 Day Avg. Volume: 59,994
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €50.08
• Price Target Upside: 5.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: kr50.00 ▲(4.87% Upside)

Nordic Paper Holding AB's overall stock score is primarily influenced by its attractive valuation, with a low P/E ratio and high dividend yield. However, financial performance concerns, including declining revenue and profitability, increased leverage, and cash flow challenges, weigh down the score. Technical analysis indicates neutral to slightly bearish sentiment, further impacting the overall assessment.

Nordic Paper Holding AB Business Overview & Revenue Model

Company Description

Nordic Paper Holding AB (publ) produces and sells natural greaseproof and kraft paper in Sweden, Italy, Germany, rest of Europe, the United States, and internationally. It offers a range of kraft paper, including sack/machine finished paper, machine glazed paper, absorbent kraft paper, and steel interleaving paper for carrier bags and food packaging, as well as in packaging for building materials and other industrial applications; and natural greaseproof paper, such as baking paper, paper for baking cups, food packaging and barrier paper, and lamination paper for building materials. The company was founded in 1871 and is headquartered in Karlstad, Sweden.

How the Company Makes Money

Nordic Paper Holding AB generates revenue primarily through the sale of its kraft and greaseproof paper products. The company's key revenue streams include supplying paper products to packaging manufacturers, food service companies, and other industrial clients that require specialized paper solutions. Nordic Paper benefits from long-term contracts and relationships with key clients, contributing to stable and recurring income. Additionally, its commitment to sustainable practices and environmentally friendly production processes enhances its appeal to eco-conscious markets, potentially opening further revenue opportunities.

Nordic Paper Holding AB Financial Statement Overview

Summary

Nordic Paper Holding AB faces challenges with declining revenue and profitability margins, increased leverage, and significant cash flow issues. While the company maintains a stable gross profit margin, the negative revenue growth and increased debt levels pose potential risks. The cash flow situation is concerning, with a sharp decline in free cash flow, impacting financial flexibility.

Income Statement

Nordic Paper Holding AB's income statement shows a stable gross profit margin of around 51% to 53% over the years, indicating efficient cost management. However, the net profit margin has decreased to 8.07% in the TTM period from 9.96% in 2024, reflecting reduced profitability. The revenue growth rate has turned negative in the TTM period, suggesting a decline in sales. The EBIT and EBITDA margins have also decreased, indicating pressure on operating profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.93 in the TTM period, up from 1.17 in 2024, indicating increased leverage and potential financial risk. Return on equity has decreased to 26.46% in the TTM period from 34.14% in 2024, reflecting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow, with a negative growth rate of -92.72% in the TTM period, highlighting cash flow challenges. The operating cash flow to net income ratio is moderate at 0.59, indicating some ability to convert income into cash. However, the free cash flow to net income ratio is negative, suggesting issues in generating free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.66B	4.67B	4.47B	4.44B	3.08B	2.90B
Gross Profit	2.37B	2.40B	2.35B	2.39B	1.64B	1.68B
EBITDA	707.00M	822.00M	763.00M	902.00M	402.00M	447.00M
Net Income	376.00M	465.00M	416.00M	566.00M	144.00M	258.00M
Balance Sheet
Total Assets	5.75B	4.14B	3.84B	3.63B	3.25B	2.35B
Cash, Cash Equivalents and Short-Term Investments	1.74B	398.00M	496.00M	325.00M	360.00M	415.00M
Total Debt	3.01B	1.59B	1.23B	1.26B	1.65B	1.13B
Total Liabilities	4.20B	2.77B	2.64B	2.58B	2.67B	1.76B
Stockholders Equity	1.56B	1.36B	1.19B	1.04B	584.00M	593.00M
Cash Flow
Free Cash Flow	-2.00M	-169.00M	557.00M	415.00M	228.00M	250.00M
Operating Cash Flow	514.00M	333.00M	765.00M	560.00M	408.00M	352.00M
Investing Cash Flow	-518.00M	-504.00M	-223.00M	-92.00M	-824.00M	-102.00M
Financing Cash Flow	1.66B	60.00M	-346.00M	-534.00M	361.00M	-70.00M

Nordic Paper Holding AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NPAPER, the sentiment is Negative. The current price of 47.68 is above the 20-day moving average (MA) of 47.52, below the 50-day MA of 48.94, and above the 200-day MA of 44.64, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 51.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NPAPER.

Nordic Paper Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCA.B	73 Outperform	86.56B	22.66	3.65%	2.43%	12.89%	15.29%
BILL	66 Neutral	21.02B	11.49	6.68%	4.13%	6.04%	162.11%
HOLM.A	66 Neutral	56.73B	20.23	4.85%	2.54%	1.15%	-5.55%
NPAPER	61 Neutral	€3.19B	8.46	26.92%	8.41%	3.95%	-10.26%
GRNG	59 Neutral	12.65B	13.08	10.41%	2.61%	18.20%	-0.10%
STE.R	46 Neutral	83.69B	-60.80	-1.14%	2.43%	4.81%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nordic Paper Holding AB Corporate Events

Nordic Paper to De-list from Nasdaq Stockholm Following Majority Acquisition by Coniferous Bidco

Coniferous Bidco AB, controlled by Strategic Value Partners, LLC, has initiated a compulsory redemption of remaining shares in Nordic Paper Holding AB after acquiring over 90% of the company’s shares. Consequently, Nordic Paper’s board has resolved to apply for de-listing from Nasdaq Stockholm, with the last trading day to be announced. The move signifies a significant shift in ownership and operational strategy for Nordic Paper, impacting its market presence and shareholder structure.

The most recent analyst rating on (SE:NPAPER) stock is a Hold with a SEK51.00 price target. To see the full list of analyst forecasts on Nordic Paper Holding AB stock, see the SE:NPAPER Stock Forecast page.

Nordic Paper Announces Extraordinary General Meeting for Board Changes

Nordic Paper Holding AB has announced an extraordinary general meeting scheduled for October 1, 2025, in Stockholm. The meeting will address several key issues, including the election of a new chairman and board members, as well as the determination of board fees. Coniferous Bidco AB, the majority shareholder, has proposed Jørgen Jensen as the new chairman, with remuneration levels set to remain unchanged per member, although the total remuneration will increase due to the extended board size.

The most recent analyst rating on (SE:NPAPER) stock is a Hold with a SEK51.00 price target. To see the full list of analyst forecasts on Nordic Paper Holding AB stock, see the SE:NPAPER Stock Forecast page.

Nordic Paper Reports Q2 2025 Results Amid Market Challenges

Nordic Paper reported a 6% decline in net sales for Q2 2025 compared to the previous year, with a decrease in EBITDA and operating profit margins. Despite market uncertainties and softening demand, the company is making strategic investments in environmental projects and secured new long-term financing, positioning itself for future growth and sustainability. The company also approved an extraordinary dividend for shareholders, reflecting confidence in its financial stability.

Nordic Paper Announces Extraordinary Dividend

Nordic Paper Holding AB announced an extraordinary dividend of SEK 12.00 per share, approved at their extraordinary general meeting. The dividend will be distributed to shareholders on July 23, 2025, with a record date of July 18, 2025, reflecting the company’s commitment to returning value to its shareholders.

Nordic Paper to Present Q2 2025 Interim Report

Nordic Paper Holding AB has announced that it will release its interim report for the second quarter of 2025 on July 16. The company’s CEO and CFO will present the report in an audiocasted telephone conference on July 17, which will include a Q&A session. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

Nordic Paper Announces Extraordinary General Meeting and Dividend Proposal

Nordic Paper Holding AB has announced an extraordinary general meeting scheduled for July 16, 2025, in Stockholm. The meeting will address a proposed extraordinary dividend of SEK 12.00 per share, totaling approximately SEK 803 million, with a record date of July 18, 2025, and payment on July 23, 2025.

Nordic Paper Proposes Extraordinary Dividend Amid New Financing

Nordic Paper’s board of directors has proposed an extraordinary dividend of SEK 12 per share following the establishment of a new long-term financing agreement. This proposal, amounting to approximately SEK 803 million, will be decided at an extraordinary general meeting on 16 July 2025. The decision reflects the company’s secured permanent financing and leaves room for ongoing investments, indicating a positive outlook for stakeholders.

Nordic Paper Secures Long-Term Financing to Refinance Debt

Nordic Paper has secured a long-term financing agreement with a consortium of financial institutions, involving a EUR 275 million term loan B and a EUR 65 million revolving credit facility. This financing will be used to refinance existing debt, with the term loan B having a seven-year tenor and the revolving credit facility a six and a half-year tenor. The transaction, advised by Santander and involving J.P. Morgan and Standard Chartered, will result in one-off costs of SEK 37 million due to the early discharge of existing financing, impacting the company’s financial results for the second quarter of 2025.